Minnesota
Minnesota: New Paid Sick and Safe Time Rules
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APPLIES TO All Employers with Employees in MN |
EFFECTIVE JUL 6, 2026 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
The Minnesota Department of Labor & Industry (DLI) recently finalized rules implementing the Earned Sick and Safe Time Act (ESST). The rules clarify core issues around accrual, eligibility, and how hours are counted.
Accrual Year. If an employer doesn’t designate and clearly communicate an “accrual year,” it defaults to the calendar year, and any change to the accrual year’s start/end dates must be given as advance written notice and cannot negatively affect an employee’s ability to accrue time.
Hours Worked. For eligibility, employers must determine “in good faith” whether an employee is anticipated to work at least 80 hours per year in Minnesota—meaning they evaluated the anticipated schedule and work location in a way that is not knowingly false or in reckless disregard of the truth. The rules also address tricky counting scenarios, including how to deduct ESST for exempt employees taking a full day off and how to handle absences from “indeterminate” shifts (e.g., deducting based on the replacement worker’s hours, the employee’s most recent similar shift, or the greatest hours worked by a similarly situated employee).
Time Credited and Increments of Accrual. ESST must be credited each pay period based on all hours worked, no later than the regular payday after that pay period, and is considered accrued when credited. Employers need not credit in increments smaller than one hour. Rehired employees returning within 180 days are entitled to reinstatement of up to 80 hours of previously accrued but unused ESST (unless a higher amount is agreed to or required elsewhere).
Accrual and Advancing Methods. For employers who “advance” (frontload) ESST, the advanced amount must be calculated at no less than the statutory accrual rate; employers generally aren’t required to advance more than 48 hours; and if the advance falls short of what an employee would have actually accrued, the employer must make up the difference within 15 calendar days. Any change to an accrual method must be communicated in writing and takes effect only at the start of the next accrual year—if notice isn’t timely, the prior method stays in place.
Employee Use. The rules also protect employee use and set boundaries around misuse. Using ESST is the employee’s right; employers cannot force employees to use it, and an employee who declines to use it for an absence forfeits the statute’s protections for that leave.
Incentives. Incentives tied to goals like perfect attendance or hours worked may be denied when the goal isn’t met due to ESST use—unless the incentive is otherwise paid during other leave.
Reasonable Documentation. Employers may require “reasonable documentation” only as the statute allows, must clearly communicate that requirement, and must give employees reasonable time to comply.
Employee Misuse. Misuse (using ESST for a non-qualifying purpose) loses statutory protection and may be disciplined. Notably, the rules define a ”pattern or clear instance of suspected misuse”—such as repeatedly using ESST adjacent to days off/holidays, repeatedly using increments under 30 minutes at the start/end of shifts, using ESST on a day a paid-leave request was denied, or documentation conflicting with the claimed use—which permits an employer to request documentation without it constituting retaliation. Even so, employers cannot deny future ESST use for a qualifying purpose based on past misuse or mere suspicion.
More Generous Policies. Excess paid time off or other paid leave offered above the statutory minimum is subject to ESST’s minimum standards (except the accrual requirements of § 181.9446) only when used for a qualifying purpose. The rules also clarify that “other salary continuation benefits” include Minnesota Paid Leave under Chapter 268B, coordinating ESST with the state’s broader paid-leave framework.
Action Items
- Review the rules here and FAQs here.
- Update paid sick leave policies for compliance.
- Have appropriate personnel trained on sick leave requirements.
Minnesota: Disability Discrimination Accommodation
Effective August 1, 2026, SB 3210 says that failure to engage in the process to determine if a reasonable accommodation exists that would allow people with disabilities to participate fully in employment may be an unfair discriminatory practice under the Minnesota Human Rights Act. Employers should review their internal processes to ensure that they engage in the interactive process for accommodation requests. Appropriate personnel should be trained on how to recognize requests and how they should follow the employer’s process.
REMINDER | Minnesota: Secure Choice Retirement Program Deadlines
The Minnesota Secure Choice Retirement Program has a phased in timeline for employers with five or more employees to enroll in the program or file an exemption. The first deadline was June 30th. Covered employers should ensure compliance in accordance with their applicable deadline.
- 100+ Employees: Deadline was June 30, 2026.
- 50–99 Employees: July 1, 2026 – December 31, 2026.
- 25–49 Employees: January 1, 2027 – June 30, 2027.
- 10–24 Employees: July 1, 2027 – December 31, 2027.
- 5–9 Employees: January 1, 2028 – June 30, 2028.
- Less than 5 employees: Permanently exempt.
Employers should review the Secure Choice website for registration and more information.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase